September 21, 2014, 9:01 am
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Importance of local domestic supply PDF Print E-mail

CImage_20The difficulties in the use of biofuels are not the acceptance of the engine or the powertrain. Rather the issue is security of local supply – meaning that we would need to significantly increase our domestic fuel base.

An increased domestic supply would have two major benefits. Firstly, the industry in Australia currently has no conflict in a ‘food for fuel’ argument. The current production comes from waste streams, and it is imperative that this focus continue. Any imported product will have either a conflict with food (for example, corn production) or the destruction of native lands (such as palm oil through the destruction of rainforests). Without a doubt these issues would be to the detriment of the industry as a whole and would be simply unacceptable to the public.

Secondly however, a local supply chain means less impact of international markets on pricing of fuels. If the vast majority of fuels are produced domestically, the pricing is far less susceptible to any international volatility or fluctuations.